Number of Credit Cards

Credit Basics

How Many Credit Cards Are Best to Apply Online for

Every day we can find some credit card offers in our mail boxes. Credit card companies offer credit deals for everyone from a student to a business owner. No matter good or bad credit history you have - there is a credit deal for you. Small plastics help you to get movie tickets, cash back, discounts, free flights etc. It makes it really hard to resist the temptation to apply for one more card. But what number of credit cards is best? How does the quantity of cards affect your credit score?

It's curious that most Americans carry in average 5 - 10 credit cards in their wallets. According to some articles about credit cards, the average family has a debt of around $12,000. The average annual income for a household is about $50,000 which shows that the debt amounts for 24% of the total income. And this number doesn't take car loans and mortgage loans into account. What an alarming tendency!

Actually it is rather hard to define how many cards is optimum to have. But in general two or three plastics are enough no matter good or bad credit history you have.

Regard that the important matter is not the quantity of cards, but your outstanding balance. It should vary between 25% and 50% of the available balance on each of your credit cards. The larger balance may indicate that you are not reliable enough, and some creditors won't trust you.

Just think how easy it is to keep a track of only a few cards! Less cards - less problems. And usually we own something like 2 reward cards, 3 gasoline cards, business, and so on, making our life more hectic.

Julia, 36: "I have 2 credit cards and feel absolutely happy. I own hotel rewards credit card and Disney Visa credit card. I need rewards card because I can save on travel and get cash back with it. I travel within the country and abroad a lot. This card is just what I need, because wherever I go to, I save on tickets, hotels, rentals and cash advances".

Owning the Disney Visa credit card helps to save on Disney programs. It is a real bargain if you have kids. With this plastic you are saving while you are making your children happy. You can use this plastic for every day purchases and for attending Disney Park with your family. A tiny card can help you spend more time with your family.

Julia: "I think my finances are safe. They are entirely under control because I have only two of them. It's good to realize that my plastics are working for me, and not I'm for them!"

So next time you check your mail box and see the credit card offer, think carefully whether you really need it or not.

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